Tenants understand that their rent often includes costs of utility services like water, gas and electricity. When utility rates increase or consumption increases, rents are raised. With AMR submetering, tenants pay only for accurate usage rather than neighbor’s wasteful practices.
Allocation Methods can be Inaccurate and Unfair
The most common allocation method used by some property owners is Ratio Utility Billing Service (RUBS) that allocates utility expenses according to a formula that may or may not accurately reflect consumption. Factors such as square footage, number of occupants, and number of bathrooms are taken into account, however usage of utility services is not addressed. These methods have been so controversial that they are illegal in several states.
AMR is Accurate and Fair
With AMR submetering, tenants that use less utility service receive a lower bill while tenants that use more utility service receive a higher bill. Rather than estimating consumption levels based upon the number of occupants, bathrooms, or square footage, AMR submetering measures real consumption.